HMRC lifts ban on fractional shares in ISAs – reports

Labour prepares legislation update

HM Revenue & Customs is reportedly set to allow investors to hold fractional shares in Individual Savings Accounts, reversing its position from last year.

While a number UK investment trading apps allow investors to purchase fractional shares within ISAs, the UK tax authority said last year that fractional shares would not eligible for tax-free accounts. HMRC has now changed its position ahead of an expected change in UK legislation by the new Labour government as early as 30 September, according to draft secondary legislation seen by the Financial Times. Charles Schwab brings US fractional share trading to UK investors "The government has committed to changing the ISA rules to allow certain fractional shares," the HMRC told the news...